Amazon announced a second major wave of layoffs on Wednesday, cutting 16,000 positions globally. This latest move brings the total number of corporate roles eliminated in the last three months to approximately 30,000. The restructuring is a response to pandemic-era over-hiring and a strategic shift toward the widespread adoption of artificial intelligence.
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The job cuts are hitting key divisions across the company’s corporate landscape, including:
- Amazon Web Services (AWS)
- Retail and Prime Video
- Human Resources
This follows an initial cut of 14,000 white-collar roles in October. CEO Andy Jassy has emphasized that the goal is to eliminate “excessive bureaucracy” by reducing management layers and streamlining operations. Despite the frequency of these announcements, Beth Galetti, Senior VP of People Experience and Technology, clarified that the company does not plan to make broad reductions a recurring “new rhythm.”
These layoffs highlight a significant shift in corporate dynamics driven by artificial intelligence. Advanced AI assistants are now capable of handling everything from routine administrative duties to complex coding tasks with high precision.
Jassy previously signalled that increased automation would inevitably lead to corporate job losses. While experts at the World Economic Forum recently noted that AI can often be used as a convenient “excuse” for planned downsizing, they also suggest that while old roles disappear, new AI-centric positions will eventually emerge.
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While 30,000 jobs is a staggering number, it represents a specific segment of Amazon’s massive workforce:
- Corporate Impact: These cuts represent nearly 10% of Amazon’s corporate workforce.
- Total Employee Base: The reduction is a small fraction of the company’s 1.58 million total employees, the vast majority of whom work in fulfilment centres and warehouses.
- Automation in Logistics: Beyond office roles, Amazon is aggressively investing in robotics within its warehouses to accelerate packaging and delivery while further reducing reliance on manual labour.
Amazon joins other tech giants like Meta and Microsoft in recalibrating after the massive hiring surge seen during the COVID-19 pandemic. The company is scheduled to report its latest quarterly financial results next week.
